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Ex-Square COO Keith Rabois says that he resigned over allegations of sexual harrassment

Today news broke that Square COO Keith Rabois has left the company, with CFO Sarah Friar taking on his role as “acting COO.” Rabois has since shared his side of the story, claiming that he left the company due to a sexual harassment lawsuit.

As you might expect, this appears to be a very complicated situation. Rabois states that he was in a physical relationship with another Square employee, but says the “relationship was welcome.” He goes on:

(2) Square did not know of the relationship before a lawsuit was threatened; it came as a complete surprise to the company. (3) He [the accuser] never received nor was denied any reward or benefits based on our relationship. And (4), I did not do the horrendous things I am told I may be accused of.

According to AllThingsD, Square CEO Jack Dorsey released a brief statement on the news, crediting Rabois as an important player in Square’s growth: “We couldn’t have done it without him and we wish him well in his next opportunity.”

Rabois details that he resigned from Square so his “colleagues could continue to do great work without the distraction that a lawsuit would most certainly bring.” The former Square COO says he is “already working on something new,” which he hopes to announce next month.

Update: AllThingsD’s Kara Swisher caught up with Rabois, shedding new light on the situation. According to Swisher’s notes, “Square has said it will fight any lawsuit filed and is currently supporting Rabois.” The relationship in question was said to have lasted through to December.

Naturally, we are not casting guilt or granting exoneration at this point. The case will unfold as it should, justice willing.